The welfare loss of a tariff equals that of an import quota that leads to the same level of imports
Indicate whether the statement is true or false
False. In the case of a tariff the government receives revenue which does not reduce welfare. With a quota this amount is often lost to foreign importers.
Economics
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Refer to Figure 5-8. Suppose the emissions reduction target is currently established at 8 million tons. What is the area that represents the cost of eliminating an additional 1 million tons?
A) A + B B) A + B + C C) B + C D) A
Economics
In the short run, an unanticipated shift to a more restrictive monetary policy is most likely to result in
a. a decrease in short-term interest rates. b. a reduction in the growth rate of real GDP. c. an increase in the rate of inflation. d. an increase in employment.
Economics